As a potential dockworker strike on October 1st looms for major U.S. East and Gulf Coast ports, we continue to explore alternative routes and preparing contingencies to minimize supply chain disruptions.
The key issues in the International Longshoremen’s Association (ILA) contract negotiations with the United States Maritime Alliance (USMX) include:
Wages: The ILA is pushing for higher wages to keep up with inflation and ensure financial security for its members1.
Automation: There are significant concerns about the impact of automation on jobs. The ILA is seeking assurances and protections against job losses due to increased automation at ports2.
Benefits: Negotiations also involve discussions on improving benefits for dockworkers.
These issues have led to a stalemate, with both sides standing firm on their positions. The potential strike, set for October 1, could have significant repercussions on the supply chain and the economy.
The Impact
Work stoppages: Key East Coast and Gulf Coast ports, including major hubs such as New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades would be affected.
Disruption to freight networks: Significant disruption of supply chains, in particular for time-sensitive imports such as automotive, retail, and pharmaceuticals. Costs and delays will rise.
Situations
• One-to-two-day strike: Operations at major East and Gulf Coast ports will cease. Ships would remain anchored offshore, and Container Freight Station (CFS) facilities would face backlogs. Warehouses and transportation hubs would see delays, but likely manageable in the short term.
• One-to-two-week strike: Severe congestion at ports as CFS facilities struggle to process backlogged containers. Warehouses would be overwhelmed, and transportation networks like trucking and rail would experience significant strain, resulting in increased costs and longer delays.
The Options
One viable solution is to utilize our Montreal services with transload and trucking options to areas on the East Coast. By routing your cargo this way, you can potentially avoid the disruptions associated with a strike at East Coast or Gulf Coast ports.
For more information on transit times and costs for you to take the best decision, please reach out to our Pricing team at [email protected]
We are closely monitoring the situation and will provide updates as they become available. If you have any questions or concerns, please do not hesitate to contact us.
Thank you for your understanding and continued partnership.